Sony Post ¥150B Loss

Sony’s financial report released today is grim news. The electronics division has posted potential financials ¥340 billion lower than their earlier forecasts. According to the report, ¥250 billion is due to a deterioration in the business environment brought on by the slowing global economy and an intensification of price competition, approximately ¥40 billion is due to the impact of the appreciation of the yen, ¥30 billion is due to additional restructuring charges and ¥20 billion is due to a deterioration in equity in net income (loss) of affiliated companies.

In the Game segment, presumably meaning PlayStation, operating income (loss) is expected to be lower by approximately ¥30 billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen and approximately ¥15 billion is due to lower-than-expected sales. We’re not financial scientists, but it looks like a net loss of 150 billion yen ($1.65 billion) and an operating loss of 260 billion yen ($2.86 billion) for the year.

With regards to the restructuring news, it appears the gaming division will be spared – according to Nikkei, Sony plans to close one of two domestic television factories and cut more than 2,000 full-time jobs in Japan. The Company also aims to eliminate roughly 3% of its domestic full-time staff, or more than 2,000 workers, by the end of fiscal 2009. In a separate cost-cutting move, executive- and managerial-level bonuses will be slashed next fiscal year.

We do not license content or design to any other site. No element of this site can be used without written permission. All content should be considered opinion. Article posters are the individual owner of the article content. We are not affiliated with any third party.